Air India, the state-run carrier, found an indirect mention in the
319-page Economic Survey 2017, but it may not bring cheers to the
approximately 20,000 employees of the airline. Chief Economic Adviser
Arvind Subramanian was not happy with efforts to make it "world class."
Air India had earned an operating profit of Rs 105 crore in 2015-16, the first time since its merger with Indian Airlines about nine years ago; the ailing airline had incurred net loss of Rs 2,636 crore in the preceding financial year. The carrier's total income rose to Rs 20,526 crore in 2015-16.
"The most well-known example is the difficulty of privatising public enterprises, even for firms where economists have made strong arguments that they belong in the private sector. Consider the civil aviation sector. Defying history, there is still the commitment to make the perennially unprofitable public sector airline 'world class.' Moreover, policy reform in the sector has been animated as much by an interventionist as liberalising spirit, reflected for example in restrictions on pricing," Subramanian observed.
To Read the News in Full 31/01/17 S V Krishnamachari/International Business Times
Air India had earned an operating profit of Rs 105 crore in 2015-16, the first time since its merger with Indian Airlines about nine years ago; the ailing airline had incurred net loss of Rs 2,636 crore in the preceding financial year. The carrier's total income rose to Rs 20,526 crore in 2015-16.
"The most well-known example is the difficulty of privatising public enterprises, even for firms where economists have made strong arguments that they belong in the private sector. Consider the civil aviation sector. Defying history, there is still the commitment to make the perennially unprofitable public sector airline 'world class.' Moreover, policy reform in the sector has been animated as much by an interventionist as liberalising spirit, reflected for example in restrictions on pricing," Subramanian observed.
To Read the News in Full 31/01/17 S V Krishnamachari/International Business Times
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